B Law & Tax
27 October 2023

Tax advisor: The Provincial Council of Gipuzkoa approves the Temporary Tax on High Fortunes

The government council of the Provincial Council of Gipuzkoa approved on Tuesday the draft foral regulation that regulates the Temporary Solidarity Tax on High Fortunes. Additionally, they have submitted the project for consideration and voting in the general assemblies, requesting an expedited process in accordance with Article 85 of the Foral Parliament’s Regulations.

The spokesperson for the Provincial Council, Irune Berasaluze, explained during a press conference that this decision is based on the need for “the impact of the new tax to take effect before December 31 of this year.” Therefore, it is essential to expedite the approval and publication of the foral regulation before that date.

Berasaluze has pointed out that when considering the regulations to govern the new tax, it is essential to take into account that it should complement the wealth tax. This is because the historical territories already have full regulatory competence over the wealth tax, as it is a tax agreed upon with regional regulations.

In this regard, the draft foral regulation aligns with the current regulation of the wealth tax. As agreed by the provincial council’s spokesperson, the primary elements of the new tax complement the existing regulation of the wealth tax concerning its scope, exemptions, taxpayers, taxable base, liquidable base, and accrual.

Furthermore, she noted that due to the complementary nature of this tax in relation to the wealth tax, the tax payable by taxpayers, if approved, will be deducted from the Temporary Solidarity Tax on High Fortunes. This is done to prevent double taxation on the same assets and rights.

Finally, Berasaluze announced that on November 7, the provincial deputy of Finance, Jokin Perona, will appear before the general assembly committee to provide a detailed explanation of the approved project sent to the provincial legislature. The parliamentary process will commence, and efforts will be made to secure the necessary approval, as the government team is aware of not having a sufficient majority in the general assembly.

 

B Law & Tax International Tax & Legal Advisors.

 https://www.blaw.es/

“In B LAW&TAX we specialize in international tax advisory services for both companies and individuals. If you would like to obtain further information, we would be delighted to assist you at 917817194 or at  [email protected]